Sell JK Lakshmi Cement, target price Rs 236: Centrum Broking
JK Lakshmi Cement Ltd., incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 2915.86 Crore) operating in Cement sector.
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Promoters held 46.2 per cent stake in the company as of June 30, 2020, while FIIs held 10.4 per cent, DIIs 16.8 per cent and public and others 26.6 per cent.
Centrum Broking has given a sell rating to JK Lakshmi Cement with a target price of Rs 236. The share price moved down by 3.15 per cent from its previous close of Rs 255.40. The stock’s last traded price is Rs 247.35.
JK Lakshmi Cement Ltd., incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 2915.86 Crore) operating in Cement sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 911.54 Crore, down 19.86 % from last quarter Sales of Rs 1137.47 Crore and down -19.78 % from last year same quarter Sales of Rs 1136.32 Crore. The Company reported net profit after tax of Rs 50.63 Crore in latest quarter.
Investment Rationale The brokerage continues to assign a SELL rating on JKLC with a target price of Rs236 (earlier Rs207) based on the replacement cost. It has assigned ~50% discount to the replacement cost to arrive at the fair value of the company. The stock trades at 7x EV/EBITDA (FY22 earnings) at the target price.
Promoter/FII Holdings Promoters held 46.2 per cent stake in the company as of June 30, 2020, while FIIs held 10.4 per cent, DIIs 16.8 per cent and public and others 26.6 per cent.
